Possible easing with mortgage situation
September 24, 2009
Following the most recent Monetary Policy Committee meeting, where it was decided that the base interest rate would stay on hold for a fifth month at 0.5 percent, the Bank of England also announced that it was pumping more money into the economy through quantitative easing.
This will bring the total amount ploughed into the markets through this process to £175 billion, which was £25 billion more than had originally been allocated.
Some industry experts now feel that the money that has been put into the economy through quantitative easing could help to ease the situation with mortgage availability in the UK.
Since the onset of the global credit crunch in 2007 it has become very difficult for many people to get affordable mortgage finance, and this has had an adverse knock on effect on the property market, with sales and property values plummeting since they peaked in the autumn of 2007.
However, although some think that the mortgage situation is easing, which has been backed up by recent reports over increased mortgage lending levels, there are others that feel that some groups are still suffering difficulties, such as first time buyers who are becoming increasingly reliant on their parents to help them out.
One official said: “The bank of mum and dad continues to play a crucial role in propping up first-time buyers’ ability to purchase, and those unable to get family assistance are being forced to save for longer.”
The Council of Mortgage Lenders does expect things to improve over the coming months, stating: “Banks and building societies have said that they will be more confident about lending to borrowers in higher LTV tiers over the next three months.”
The group added that higher loan to value mortgages were likley to become available over the coming months, which is likley to prove helpful to many first time buyers.
- Central bank cuts rates and considers quantative easing Following the March Monetary Policy Committee meeting the Bank of England has cut the UK base interest rate once again, slashing it by a further 0.5 percent and taking it to a fresh all time
- No change in interest rates for June Following the Monetary Policy Committee meeting, which was held earlier this week, the Bank of England has announced that the UK base rate is to be kept on hold for yet another month. This is
- No change in interest rates for January There has been no further change in interest rates for the month of January. An announcement was made by the Bank of England following the Monetary Policy Committee meeting for January, where it was confirmed
- Interest rates being kept static for fourth month This month has seen the Bank of England announce that for the fourth month in a row the base interest rate is being kept on hold, at its all time low level of 0.5 percent.
- Monetary Policy Committee keeps rates on hold The base interest rate in the UK is to stay on hold for the first time in seven months, with the Bank of England announcing that it is leaving the rate on hold at 0.5
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